Microsoft has denied the rumor that it ordered its Xbox division to achieve a 30% profit margin, a claim that circulated after a report by Bloomberg and other sources.
According to these reports, this ambitious target, which is well above the video game industry average (~17-22%), was set by Chief Financial Officer Amy Hood and contributed to layoffs, project cancellations, and budget constraints at Xbox.
However, Microsoft told CNBC that the 30% figure was not correct, even though it sets ambitious goals, rejecting the idea that such a threshold is an official directive for Xbox games.
The article notes, however, that the division has encountered difficulties recently, with projects such as Perfect Dark, Everwild, and Blackbird being canceled, and even the absence of an “Xbox Wrapped” this year due to budget constraints.
